Research >> Economics
ADP National Employment Report Increased by 177,000 jobs in August 2023
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Private sector employment increased by 177,000 jobs in August and annual pay was up 5.9 percent year-over-year, according to the August ADP® National Employment ReportTM produced by the ADP Research Institute® in collaboration with the Stanford Digital Economy Lab (“Stanford Lab”).
“This month's numbers are consistent with the pace of job creation before the pandemic,” said Nela Richardson, chief economist, ADP. “After two years of exceptional gains tied to the recovery, we're moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede.”
Private employers added 177,000 jobs in August
Job growth slowed notably last month, driven heavily by leisure and hospitality. Job creation by hotels, restaurants and other employers in the sector fell to 30,000 in August after months of strong hiring.
Change in U.S. Private Employment: 177,000
Change by Industry Sector
Goods-producing: 23,000
o Natural resources/mining 5,000
o Construction 6,000
o Manufacturing 12,000
Service-providing: 154,000
o Trade/transportation/utilities 45,000
o Information 5,000
o Financial activities 0
o Professional/business services 15,000
o Education/health services 52,000
o Leisure/hospitality 30,000
o Other services 7,000
Change by U.S. Regions
Northeast: 59,000
o New England -3,000
o Middle Atlantic 62,000
Midwest: -15,000
o East North Central -11,000
o West North Central -4,000
South: 119,000
o South Atlantic 54,000
o East South Central 7,000
o West South Central 58,000
West: 13,000
o Mountain 26,000
o Pacific -13,000
Change by Establishment Size
Small establishments: 18,000
o 1-19 employees 1,000
o 20-49 employees 17,000
Medium establishments: 79,000
o 50-249 employees 74,000
o 250-499 employees 5,000
Large establishments: 83,000
o 500+ employees 83,000
PAY INSIGHTS
Pay growth continued its slowdown in August Job stayers saw a year-over-year pay increase of 5.9 percent, the slowest growth since October 2021. For job changers, pay growth also decelerated, to 9.5 percent. For the first time, all 50 states and Washington, D.C., experienced a slowdown in pay growth.
Median Change in Annual Pay (ADP matched person sample)
Job-Stayers 5.9%
Job-Changers 9.5%
Median Change in Annual Pay for Job-Stayers by Industry Sector
Goods-producing:
o Natural resources/mining 5.9%
o Construction 6.0%
o Manufacturing 5.5%
Service-providing:
o Trade/transportation/utilities 5.8%
o Information 5.4%
o Financial activities 6.2%
o Professional/business services 5.8%
o Education/health services 6.5%
o Leisure/hospitality 6.9%
o Other services 5.8%
Median Change in Annual Pay for Job-Stayers by Firm Size
Small firms:
o 1-19 employees 5.1%
o 20-49 employees 6.0%
Medium firms:
o 50-249 employees 6.2%
o 250-499 employees 6.0%
Large firms:
o 500+ employees 6.0%
The July total of jobs added was revised from 324,000 to 371,000.
Posted: August 30, 2023 Wednesday 08:15 AM